FDIC Failed Bank Report: Banks in FDIC Receivership  2008-2009

Claim Insured Accounts at Banks Closed by the FDIC

FDIC Insurance Bank Failure - insured unclaimed bank accounts

FDIC Failed Banks - Claim Missing bank savings accounts
Cost to FDIC Deposit Insurance Fund of 180 failed banks in 2008-10: $55.4 - $64.1 billion ...

FDIC Failed Bank List

The Federal Deposit Insurance Corporation (FDIC), created by the Banking Act of 1933, administers insurance funds to protect depositors from losing money when banks fail.

Participating banks pay premiums to the FDIC Deposit Insurance Fund (DIF). If a bank fails, the FDIC pays depositors directly, or transfers insured funds to a successor bank.

There has been at least one bank failure every year since operations began, with more than 1,400 banks and 700 savings institutions closing between 1982 and 1992 alone. 

There were 25 bank failures in 2008, including the largest ever, Washington Mutual, with $182 billion in deposits. In 2009, there were 140 bank failures.

At year end 2009, the FDIC's list of problem institutions included 702 banks with assets in excess of  $403 billion; so the number is certain to rapidly increase. The first failure of the current year - Horizon Bank of Bellingham, Washington - occurred on January 8th. To date there have been twenty-six bank failures in 2010.

At the start of the credit crisis in 2008, the Deposit Insurance Fund contained $45 billion, but it has been rapidly depleted. FDIC recently increased bank premiums to make up for the shortfall, and can draw on a  $500 billion line of credit from the US Treasury, if necessary, as it did in 1991 to protect depositors in the aftermath of the S&L crisis.

When a bank or savings and loan is ordered closed by government regulators, the FDIC is appointed Receiver, with responsibility for the payout of insured deposits up to $250,000 * per qualified account; and liquidation of the institution's assets, which are distributed to creditors.

When a bank fails, the FDIC provides written notice within 30 days to insured depositors advising they must claim their deposit from the FDIC, or if the deposit has been transferred to another institution, from that institution. A second notice is mailed 15 months after the first.

► Be advised, however, that not every depositor with funds in a failed bank will receive notification from the FDIC.

Beneficial owners of fiduciary accounts, including Uniform Transfers To Minors (UTMA) accounts, escrow accounts, Interest on Lawyer Trust Accounts (IOLTA), and deposit accounts obtained through a broker (Brokered Accounts) will not be contacted by the FDIC.

This is because these accounts are on the failed bank's records in the name of the fiduciary, not the individual owner. The FDIC does not have access to ownership information, and therefore will not contact individual depositors. It is the responsibility of the broker or other fiduciary to initiate a claim.

There are negative consequences for those who fail to promptly claim insured funds.

Accounts transferred to successor institutions may have lower interest rates and can lose insurance coverage, after a period of time, generally six months. If an individual already has accounts at a successor institution, perhaps unknowingly in the case of brokered deposits, the insurance limit may be exceeded and funds could be lost in a subsequent receivership. In a worst case scenario, claims on accounts which are inactive for an extended period may be time barred, and safe deposit boxes can be drilled and the contents sold at auction.

It is important to understand you may have an account at a failed institution and not know it, either because you were a depositor at a bank acquired by an institution that subsequently failed, or if you are the beneficial owner of a brokered or trust account.

◄ For specific claims information and a list of other banking institutions that a failed bank has acquired over the years, select a bank closure from the list, or go to: Bank Search

Different rules apply to failed Credit Unions

The National Credit Union Administration (NCUA) supervises and insures over 7,329 federal credit unions and 4,538 state-chartered credit unions.

When a federally-insured credit union is liquidated, NCUA's Asset Liquidation Management Center - not the FDIC - assumes responsibility for paying share accounts to members. NCUSIF, The National Credit Union Share Insurance Fund, currently insures member deposits up to a $250,000 * limit.

Since 1990, more than $331 million has been paid out to well over 100,000 shareholders.

There are time limits on claims. Accounts claimed within an 18-month insurance period are paid the full insured amount. After the 18-month insurance period, unclaimed shares are considered uninsured and are written down to subsidize any losses incurred.

For additional information on dormant and unclaimed credit union accounts go to Credit Union Search

* The Emergency Economic Stabilization Act of 2008 temporarily increased FDIC deposit insurance to $250,000 from October 3, 2008, through December 31, 2009; but it has now been extended to December 31, 2013. The Helping Families Save Their Homes Act of 2009 includes a provision extending $250,000 share insurance coverage provided by the National Credit Union Share Insurance Fund through December 31, 2013.

 

2010 Bank Failures
 Centenntial Bank
Waterfield Bank
Bank of Illinois
Sun American Bank
 Rainier Pacific Bank
Carson River Community Bank
La Jolla Bank
George Washington Savings Bank
La Coste National Bank
Marco Community Bank
1st American State Bank
American Marine Bank
First Regional Bank
Community Bank & Trust
Marshall Bank
Florida Community Bank
First National Bank of Georgia
Columbia River Bank
Evergreen Bank
Charter Bank
Bank of Leeton
Premier American Bank
Barnes Banking Company
St. Stephen State Bank
Town Community Bank
Horizon Bank

1st & 2nd Qtr 2009 Bank Failures
3rd Qtr 2009 Bank Failures
4th Qtr 2009 Bank Failures
2008 Bank Failures

Consumer Alert

Unclaimed FDIC Insured Deposits



Time limits on claims of FDIC-insured bank accounts, CDs and safe deposit boxes

Be advised that not every depositor with funds in a failed bank will receive notification from the FDIC, and there are time limits on claims of FDIC-insured bank accounts, CDs and safe deposit boxes.

Beneficial owners of fiduciary accounts, including Uniform Transfers To Minors accounts, escrow accounts, Interest on Lawyer Trust Accounts (IOLTA), and deposit accounts obtained through a broker (Brokered Accounts) will not be contacted by the FDIC.

This is because these accounts are on the failed bank's records in the name of the fiduciary, not the individual owner. The FDIC does not have access to ownership information, and therefore will not contact individual depositors. It is the responsibility of the broker or other fiduciary to initiate a claim.

In addition, accounts transferred to successor institutions may have lower interest rates and can lose insurance coverage, after a period of time. If an individual already has accounts at a successor institution, perhaps unknowingly in the case of brokered deposits, the insurance limit may be exceeded and funds could be lost in a subsequent receivership.

Finally, in the worst case scenario, by law accounts which go unclaimed for an extended period may be time barred, and safe deposit boxes can be drilled and the contents sold at auction.

It is important to understand you may have an account at a failed institution and not know it, either because you were a depositor at a bank acquired by an institution that subsequently failed, or if you or a deceased family member are the beneficial owner of a brokered fiduciary account.

For assistance tracing and reclaiming a lost bank account or safe deposit box go to: Bank Account Search
 


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